Problem: Federal Tax Payable - Jeb Corporation Limited
Jeb Corporation Limited (JEB), a Canadian incorporated company, operates a retail chain of computer supplies stores in Canada and abroad. JEB's taxable income for its most recent year end was $862,000. JEB is taxable in three Canadian provinces and in 2 foreign countries on its business income. JEB earns only business income.
JEB is 65% owned by non-Canadian residents. Its gross revenues are 83% earned in Canadian provinces. The % of total salaries and wages paid in Canada are 77%. JEB was not in a taxable position in either of the foreign countries.
Required:
Calculate JEB's Part I Federal tax payable.